mba /mg university/1st module

2. Why Learn Digital?
 90% of Indian brands spend upto 15% of their
marketing budgets on digital marketing
 32% of Indian brands have dedicated digital marketing
teams
 23% of Indian brands have digital marketing budgets in
excess of Rs. 1 million per annum
 14% of Indian brands spend between Rs. 10- 20 million
per annum for digital marketing
 The top three objectives to be present on social media
for Indian brands were building brand awareness,
building a community and customer engagement

3. Stats !
1. Customer Acquisition is the primary focus for majority
(58%) of Indian Marketers
2. For 50% India Marketers, e-Marketing revenue
contribution is above 10%
3. 85% of the Marketers are tracking revenues generated
through e-Marketing activities for their business.
4. 80% of India Marketers believe that integrated
campaigns (Email, Social and Mobile) can result in
increase in conversion rates
5. Social Media updates was the top choice for achieving
maximum customer engagement (46%) followed by
email campaigns (28%)

4. More Stats !
6. Social Media (66%) and Email marketing (53%) tops the
list of marketing activities being planned
7. 45% of India Consumers respond positively to email
offers (which is 3x of US Consumer).
8. For 2016 almost 50% of Indian Marketers will be
increasing their investments by 31%-50% in Email
9. The acceleration in growth of subscribers is expected
by 31% of marketers, a 500% increase from 2015
10. Indian Marketers show an increasing preference for
Purchase History to be axis for Email Marketing
Segmentation

5. Highlights from the Social Beat Digital
Marketing Industry Report 2016
1. Brand Awareness & Lead Generation are the
primary goals for most brands
2. Measuring ROI from digital marketing is the biggest
challenge faced
3. 87% brands leverage digital & 38% of them allocate
1/3rd budget to digital marketing
4. Facebook & Google are still the most popular digital
marketing channels

15. Digital Marketing
 Marketing using digital technologies.
 Use of digital technologies in the process of creating,
communicating and delivering value to the customer.
 Application of Information technology on traditional
marketing
 http://kapost.com/history-of-digital-marketing-technology/

16. Digital Marketing defined
The application of digital technologies that form channels
to market and to achieve corporate goals through meeting
and exceeding customer needs better than the
competition.
 Internet marketing is another term originally used to
refer to the achievement of corporate goals through
meeting and exceeding customer needs better than the
competition through the utilization of Internet and allied
technologies.

18. Changing Marketing Landscape
Changing
Marketing
Landscape
Evolution of
Internet and
Digital
Technologies
Digital
strategy
integration
New digital
marketing
metrics
Big Data
Wireless
networking –
the connected
consumer
Rising
individual
internet worth
Web 2.0
Era of E-
commerce
and E-retail
Influencer
Marketing
Refer: Digital Marketing,
Vandana Ahuja

19. A few
major
trends
…
Sharing is Booming
It’s the Experience
Content is King, Queen and
everything in between
Rise of the Big Data
CRM is dead
Purchase funnel has been blown to bits

20. Global Trends
Emerging
economies
Born global
firms
Diaspora
communities
Market
convergence
E-commerce
payment and
trust issues
Infrastructure
considerations
Technological
tipping points
Internet cafes,
Smartphones, Wi-Fi
& Broadband, Social
media, E-Commerce,
E-Governance
Digital divide
and e-
inclusivity

21. Traditional Marketing + Digital Technologies
= Seamless strategies and Tactics
Customer is
the CEO
E commerce
Advertising
online
Search
engine
marketing
Owned, paid
and earned
media
Mobile
marketing
Social media
marketing
User
generated
content
Online
communities
Content
marketing
Location
based
marketing
Affiliate
Marketing
Inbound
marketing
Brand
transparency
Metrics and
Analysis
Behavioral
targeting

22. Applications of IT, Internet and Web
[Digital Technologies] in marketing
A versatile
marketing tool
A measurable
medium for
marketing
An interactive
advertising
medium
A direct-
response
channel
A platform for
sales
transactions:
E-commerce
A lead/ prospect
generation
method
A distribution
channel
A customer
service
mechanism
A relationship
building tool
A customization
and
personalization
platform
A content
creation and
consumption
platform
A cost reduction
method

23. Big Data

24. Web 2.0
A collective term for certain applications of the Internet and
the World Wide Web, which focus on interactive sharing and
participatory collaboration rather than simple content delivery.
 Blogs
 You tube
 Podcasts
 Twitter
 Facebook pages
 Wikis
 Online communities
Web 2.0 provides opportunities for
content creation and enables better
campaign management, consumer
engagement and interaction
Reference: Digital Marketing, Vandana Ahuja

31. Internet
Usage in
India
• Total Population of India : 1,342,549,041 (July 2017)
• Indian Population Online: 450 million (June 2017, TRAI)
• Urban: 60%, Rural 30% (approx. source: TRAI, IMRB)
• Mobile phone as primary device for accessing internet:
Urban – 77% and Rural 92% (source: IMRB)
• 157,000,000 Facebook subscribers on June/2016, 11.7%
penetration rate.

34. Digital
Media
Industry
In India
worth
about Rs.
7000
crores

36. Differences between new media and traditional media
 6 Is of the e-marketing mix by McDonald and Wilson
(1999)
Interactivity
Intelligence
Individualization
Integration
Industry restructuring
Independence of location

37. Marketing
communication
concepts
Source:
Internet Marketing
by Chaffey, Ellis-
Chadwick,
Johnston & Meyer,
3rd ed.

44. • Online mass customization Personalization
• 24/7 convenience
• Self-service ordering and tracking
• One-stop shopping
Increases
Benefits
• Low cost distribution of communication messages
• Low cost distribution channel for digital products
• Lowers costs for transaction processing
• Lowers costs for knowledge acquisition
• Creates efficiencies in supply chain
• Decreases the cost of customer service
Decreases
Costs
• Online transaction revenues such as product,
information, advertising, and subscriptions sales; or
commission/fee on a transaction or referral
• Add value to products/services and increase prices
• Increase customer base by reaching new markets
• Build customer relationships and thus increase current
customer spending
Increases
Revenues
Digital Marketing Advantages

45. Benefits of Internet Marketing
Tangible benefits
1. Increased sales from new
sales leads giving rise to
increased revenue from:
 new customers, new markets
 existing customers (repeat-
selling)
 existing customers (cross-
selling)
2. Cost reductions from:
 reduced time in customer
service
 online sales
 reduced printing and
distribution costs of
marketing
communications
Intangible benefits
1. Corporate image
communication
2. Enhance brand
3. More rapid, more
responsive marketing
communications including
PR
4. Improved customer service
5. Learning for the future
6. Meeting customer
expectations
7. Identify new partners,
support existing partners
8. Better management of
marketing information and
customer information
9. Feedback from customers
on products

46. Opportunities and Challenges
1. Internet adoption matures
2. Online retail matures
3. Search engines are now
reputation engines
4. Image recognition takes
root
5. Improved online and
offline strategy integration
6. Intellectual capital rules
7. Online fund raising
increases
8. Location based services
9. The long tail
10. The internet of things
11. Connected life
1. Cultural impact
2. Death of privacy
3. Decline in social values
4. Rise of the individual
5. Disconnect from real life –
people living a virtual life
6. Intellectual Property and
Digital Rights Management
7. Individual privacy
protection
8. Economic offences
9. Online fraud
10. Data security
11. Online abuse
12. Crime against Children

47. Marketing Mix
 The series of 7 key variables - Product, Price, Place,
Promotion, People, Process, Physical Evidence - that
are varied by marketers as part of the customer
offering – Booms & Bitner (1981)

48. Why is digital strategy needed?
 To set clear goals for digital
channels
 To align with business strategy
(avoid ad-hoc approaches)
 Create a specific online value
proposition (OVP)
 Specify communications tools to
drive visitors
 Integrate digital and traditional
channels
 Manage customer lifecycle (e.g.
through email marketing)

49. Generic Digital
Strategy
Development
Process
Source:
Internet
Marketing by
Chaffey, Ellis-
Chadwick,
Johnston &
Meyer, 3rd ed.

50. The 5s of Digital Marketing
Source: Internet Marketing by Chaffey, Ellis-Chadwick, Johnston & Meyer, 3rd ed.
• Grow salesSell
• Add valueServe
• Get closer to customerSpeak
• Save costsSave
• Extend the brand onlineSizzle

51. Different forms of web presence
• Amazon.in, Flipkart, Jabong
Transactional e-
commerce site
• HDFC Bank, Bharath Gas
Services-oriented/
relationship building
• Nestle, Hyundai, HimalayaBrand Building site
• Yahoo!, Naukri, Times of India
Portals – general or
domain specific
• Facebook, Twitter, YouTube
Social network or
media site

52. The internet marketing environment

53. Factors influencing the online/digital
macro and micro environment of an
organization
Micro-environment
1. The marketplace
2. The organization
3. Its customers
4. Its suppliers
5. Its competitors
6. Intermediaries
Macro-environment
1. Social
2. Legal, ethical and
taxation
3. Economic
4. Political
5. Technological

54. Micro
Environment
• Competitive forces
• From value chain to value network
• New channel structures
• Location of trading
• Commercial arrangements for
transactions
• New business and revenue models
The
marketplace
• Adaptability to change
The
organization
• Access levels to the internet
• Propensity to use and buy
• Buyer Behaviour
Its customers
• Access levels to the internet
• Propensity to use
• Integration with existing systems
Its suppliers
• Competitor CapabilitiesIts competitors
• New capabilities
• New intermediaries
Intermediaries

55. Micro Environment 1. Marketplace
Internet had brought about a major range of changes in
the marketplace. The issues under review are:
1. Competitive forces
2. From value chain to value network
3. New channel structures
4. Location of trading
5. Commercial arrangements for transactions
6. New business and revenue models

56. 1.1
Competitive
forces

57. BargainingPowerofBuyers
• Increases
with wider
choice, more
knowledge
and price
transparency
• B2B
organizations
gain power
when online
links with
buyers
increase
switching
costs through
soft lock-ins
BargainingpowerofSuppliers
• Decreases
due to wider
choice and
increased
commoditizati
on due to e-
procurement
and e-
marketplaces
• B2B
organizations
lose power
since
switching
costs may be
higher due to
soft lock-in
Threatofsubstituteproductsandservices
• Substitution
is a
significant
threat
• Introduction
of new digital
products &
extended
services is
easy
• Constant
monitoring
required to
maintain
market share
• IT enables
faster new
product
development
Barrierstoentry
• Reduced,
enabling new
competitors,
especially for
firms who
have
traditionally
maintained a
large sales
force or a
premium
presence
• Online
services are
easier to
imitate which
reduces entry
barriers
Rivalrybetweenexistingcompetitors
• Internet
allows
commoditizati
on making
differentiation
difficult
• Rivalry
intensifies as
PLCs
decrease and
new product
development
increases
• Internet
facilitates the
move to a
global market,
increasing
competition
further

58. 1.2 From value chain to value network
The digital value chain:
1. Generate customer
profile, behaviour,
preferences and
purchase data
2. Tailor made offers,
contextual targeting
and instant promos
3. Customers can
create, contribute
and share content
Market
research
New product
development
Market
products
Procure
materials
Procure
products
Manage selling
and fulfilment

59. 1.3 New channel structures
 Channel Structures: The configuration of partners in a
distribution channel
 Dis-intermediation: Removal of intermediaries such as
distributors or brokers that formerly linked a company
to its customers

60.  Re-intermediation: Creation of new intermediaries
between customers and suppliers providing services
such as supplier search and product evaluation
 bookmyshow
 ebay
 Quikr
 RedBus
 Yatra
 Alibaba
 Olx
 Nykaa
 Lenskart
 Myntra
 Indiamart
 Fabfurnish

61. 1.4 Location of trading in marketplace
Marketspace: A virtual marketplace such as
the internet in which no direct contact occurs
between buyers and sellers.
Representation: The locations on the internet
where an organization is located for promoting
or selling its services. There are 3 types of
locations:
1. Supplier-controlled sites
2. Buyer controlled sites
3. Neutral sites or Intermediaries

62. 1.5 commercial arrangement for transaction
Commercial arrangements for online transactions are:
1. Negotiation – bargaining between buyers and sellers
2. Brokered deals – through online intermediaries
3. Auction – seller [buyers bid and decide final price],
buyer [buyer seeks prices from multiple sellers] and
reverse [buyer posts desired price] auctions
4. Fixed price sale – Static call [online catalogue with
fixed price] and Dynamic call [ continuously updated
prices]
5. Pure markets – Spot trade where buyers’ and sellers’
bids clear instantly e.g. stock & share trading
6. Barter – buyers and sellers exchange goods

63. 1.6 Business Models
 Business Model: a summary of how a company will
generate revenue, identifying its product offering,
value added services, revenue sources and target
customers.
 Different perspectives for alternate business models:
1. Marketplace position perspective
 Manufacturer/ Retailer/ Intermediary/ Media
2. Revenue model perspective
 Direct sales of product or service / Commission/ Rental/
Subscription/ Advertising/ Sales of syndicated content
3. Commercial model perspective
 Fixed price sales/ Brokered deals/ Auctions/ Loyalty Points

64. Types of online business models
1. E-shop
2. E-procurement
3. E-auctions
4. Virtual communities
5. Collaboration platforms
6. Third-party marketplaces
7. Value-chain integrators
8. Value-chain service providers
9. Information brokerage
10. Trust and other services

65. Micro environment 2. The organization
 The organization’s adaptability to change

66. Micro environment 3. Customers
Situation analysis on customers
Demand Analysis
Understanding the potential
and actual volume of
visitors to a site
Conversion Modeling
The extent to which visitors
[potential and actual]
convert to outcomes on the
site [leads and sales]
Access levels to the internet, Propensity to use and buy, Buyer Behaviour

67. Demand Analysis: Quantitative determination of the
potential usage and business value achieved from
online customers of an organisation.
 Quantitative analysis of perceptions of online channels
is also assessed.
 Helps understand:
1. Current trends and levels in usage of internet for
different services
2. Factors that affect how many people actively use
these services [drivers and barriers]
Major factors that govern adoption of internet:
Cost of access, Value proposition, Perception of ease of
use & Perception of security

68. Assessing Demand: Assess the level of customer
internet access and activity for different markets and
online market share
 For each customer segment and each digital channel,
assess the volume and share of customers who:
1. Have access to the digital channel
 Varies between countries and within regions
2. Are influenced by using the digital channel but purchase
using another channel
 Online research is used in every stage of purchase, Consumer is more
informed of available options, Price comparison is the norm, Online
experience impact brand evaluations, Purchase decisions are convoluted
3. Purchase using the digital channel
 Increasing number of products and services are available online,
Financial transaction security, payment options and trust is an issue
Simplified to the ratio “Access : Choose : Buy”

69. Conversion Marketing: Using marketing communications
to maximise conversion of potential customers into
actual customers.
1. Marketers build conversion or efficiency models of
their web marketing. These models assess the
efficiency of online and offline communications in
drawing the prospect through different stages of the
buying decision.
2. Total online demand in a particular market is
estimated and the success of the company in
achieving a share of this market is determined.
3. Conversion marketing tactics are used to create as
many potential site visitors into actual visitors and
then convert them into leads, customers and repeat
visitors.

70. Micro environment 4. Suppliers
Suppliers will have an impact on the quality of the
product/ service delivered to the end consumer.
 Key issues include effect of suppliers on product
prices, availability and features.
Major concerns are:
1. Access levels to the internet
2. Propensity to use
3. Integration with existing systems

71. Micro environment 5. Competitors
Competitor Analysis: Review of internet marketing
services offered by existing and new competitors ad
adoption by their consumers.
 Involves monitoring of competitor use of internet
marketing for acquisition and retention of customers.
Competitor Benchmarking: The structured comparison
of digital marketing and e-commerce services within a
market in order to identify:
1. Threats posed by changes to competitor offerings
2. Opportunities for enhancing a company’s own digital
offering using innovative approaches adopted from
non-competitors

72. Companies should review:
1. Local competitors
2. International competitors
3. New entrants both local and international
Companies must watch out for new technologies, new
approaches, new design techniques and customer
services that would give competitive advantage.
While benchmarking, companies should review
competitors’ sites identifying:
1. Best practices
2. Worst practices
3. Next practices [looking beyond its sector at leaders
in other industries and their digital practices]

73. Micro environment 6. Intermediaries
 Destination sites: Sites typically owned by merchants,
product manufacturers or retailers providing product
information [brand sites]
 Marketing intermediaries: Firms that can help a
company promote, sell and distribute its products and
services.
 Online intermediary sites: Websites that facilitate
exchanges between consumer and business suppliers.
1. Typically independent of merchants and brands
2. Can be owned by brands
3. May support social networking sites

74. Different types of potential online intermediaries or
cyber-mediaries:
1. Directories
2. Search engines
3. Comparison sites
4. Review sites or Evaluators
5. Virtual Resellers
6. Financial intermediaries
7. Forums, fan clubs and user groups or Brand
communities
8. Infomediary
9. Portal

75. Macro Environment
Political Economic Social
Technological
Legal, ethical and
taxation

76. Macro Environment –
Economic and Political
 Economic cycles – boom and depression
 Economic growth rate and Inflation
 Economic policies – Globalization, GST, China, G20
 E- government – use of internet technologies to provide
government services to citizens
 Governmental initiatives for popularizing internet -
Digital India, Akshaya Kendra, nic.in, gov.in etc.
 Political will and proactive action for internet adoption
 Internet governance – Control of the use and operation
of the internet – Chinese Govt. controls access

77. Macro Environment - Social Factors
 Social barriers to adoption of internet
 No perceived benefit
 Lack of interest
 Lack of skills
 Security problems
 Cost
 Social Exclusion – part of the society is excluded from
the facilities available to the remainder
 Digital divide
 Leapfrogging of technology

78. Macro Environment –
Legal, Ethical and Taxation 1
 Privacy – a moral right of individuals to avoid intrusion
into their personal lives
 Identity theft – the misappropriation of the identity of
another person without their knowledge or consent
 Information security
 Contact information
 Profile information
 Financial information
 Behavioural information –across websites or within a
website

79. Macro Environment –
Legal, Ethical and Taxation 2
 Cold list – data about individuals that are rented or sold by
a third party
 Permission marketing – customers agree [opt-in] to be
involved in an organisation’s marketing activities, usually
as a result of an incentive
 Spam – unsolicited email
 Cybercrime – Financial Frauds, Cyber-abuse
 Intellectual property rights – copying content, media etc.
 Varying tax laws, Contractual obligations/ liability & Legal
Jurisdiction in online operations across countries

80. Macro Environment – Technological
 Disruptive technologies – new technologies that prompt
businesses to reappraise their strategic approaches
 Diffusion of adoption of technologies & leapfrogging
 Attitude towards technology adoption in an organisation–
cautious or intermediate or risk taking
 Presence of multiple access platforms for digital media
 Technology convergence within devices – mobile
 Growth of high speed 4G mobile, broadband and wireless
internet access for home and work
 Growth of search and location based services
 Internet security – multi-layered authentication (ID, PIN, OTP,
biometric), alternative payment systems (PayPal, Paytm)
 Growth of big data, data analytics and predictive analytics

81. Online
Marketing
Mix

82. Mobile Marketing
 Multi channel strategy for reaching the audience
through mobile devices (which is the primary mode of
internet access for majority of users worldwide)
 Allows interactive marketing through mobile optimized
web pages, apps, social media, gaming, location based
services, social media, barcode & QR code scanning,
NFC and GPS messaging
 All the forms of online advertisements can be easily
adapted to the mobile as well.
 Mobile has greater reach as compared to internet
therefore is more effective

83. Advantages of Mobile Marketing
1. Communication is possible using multiple methods such as
SMS, MMS, contests, games, CRM tools, apps, music, video,
movies, images, text, USSD codes, web pages, apps,
Bluetooth, Barcodes, QR codes, NFC & GPS, blogs, vlogs,
podcasting, search and location based services.
2. Imparts instant communication to the customer.
3. The communication is direct to the target customers.
4. Provides tools for interactive marketing tool
5. Higher & faster capability of capturing user profile
6. Process is quite flexible as the feedback is instant,
7. Marketing strategies can be reframed immediately.
8. Innovative process and offer real time campaign.

84. Digital Signage
 Use LCD, LED and projection displays/ billboards are
used for communication
 Images, Video, Web pages, Streaming content are
generally displayed along with information and text.
 Found in public places, elevators, buildings, hotels &
restaurants, buses & trains, events, airports, malls etc.
 Widely used in advertising and audience engagement
through interactive signs.
 3D and 4K Ultra HD and Cloud based signage are the
latest technologies along with audience measurement
and content management software.
 Creative and relevant content is the key for maximizing
audience interaction and engagement
Reference:
https://www.digitalsignagetoday.com/